Whichoneofthefollowingoptions showthecorrectamounttobedisclosedasTotalequityand

liabilitiesinthestatementoffinancialpositionofCheshireLtdfortheyearended28February2017?

1.R624000

2.R621000

3.R606000

4.R576000

ThefollowingisinformationisextractedfromtheaccountingrecordsofCheshire Ltdasat28 February 2017, the end of the financial year:

Share capital: Ordinary shares.........................................R200 000

Land and buildings............................................................R530 500

Revaluation surplus .........................................................R30 000

Retained earnings (1 March 2016) .................................. R98 000

Equipment at cost ...........................................................R200 000

Accumulated depreciation: Equipment ............................R40 000

Long-term loan.................................................................. R150 000

Trade receivables control ................................................. R70 000

Trade payables control.....................................................R20 000

Sales.................................................................................R350 000

Allowance for settlement discount granted ..................... R5 500

Income tax expense .........................................................R30 000

Profit for the year ..............................................................R108 000

Additional information

1.The corporation is taxed at a rate of 28%.

2.On 1 March 2017, a sales invoice for R18 000 was found on the desk of the marketing manager.This invoices related to a sales transaction on 27 February 2017 and must still be recorded in thebooks of the entity.The total income tax amount for the year would be R33 000 after taking thissales invoice into account.

3.The long-term loan was obtained on 31 October 2016 and bears interest at a rate of 12% per annum.